Bill > S2206

This bill allows Rhode Island to opt out of certain provisions of the Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA), a federal law that previously exempted out-of-state lenders from Rhode Island's interest rate limits. By rejecting these DIDMCA provisions for loans made within Rhode Island, the state aims to ensure that all lenders, regardless of their charter location, must adhere to Rhode Island's statutory interest rate limits and lending rules. The bill also introduces the "Anti-Evasion of Lending Rules Act of 2026" to prevent lenders from using deceptive practices, such as disguising loans as sales or rebates, to circumvent these regulations, and clarifies that individuals or entities acting as lenders, even if they claim to be agents or service providers for exempt entities, will still be subject to Rhode Island's lending laws if they hold the primary economic interest in the loan or control the loan program. This legislation will take effect on October 1, 2026.

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